Chris and Carolyn McAuliffe, both over 60, cannot retire soon because they still owe 500,000 USD in student loan debt. "I regret borrowing money for college", said Chris, a specialist at a health insurance company.

Decades ago, when they earned their bachelor's degrees, the couple owed a total of 114,000 USD in loans for tuition. With stable jobs, they consistently made their monthly payments on time. Later, they bought a home and had two children.

Increasing financial pressure led them to consolidate their loans and choose a repayment plan with lower monthly payments. This extended the loan term, and continuous compound interest steadily increased the outstanding balance.

Teaching assistant and students at Cornell University in the US in march. Photo: AP

Like the McAuliffe family, a growing number of Americans over 60 are burdened by student debt, altering their vision of retirement.

According to data from the US Department of Education, over three million people aged 62 and older owe federal student loans, an increase from 1.8 million people in 2018. The delinquency rate among older borrowers has also surged, partly because they lack income sources beyond pensions and face additional medical expenses.

Those unable to repay their debt risk having the amount deducted from their social security benefits, tax refunds, and pensions.

Many older Americans from the post-World War II generation carry student debt from financing graduate programs. Others opted for parent PLUS loans to fund their children's education, which often come with higher interest rates and fewer repayment options.

Even for those making regular payments, the outstanding balance can increase due to accumulated interest. As a result, this group carries an average federal student loan debt of approximately 45,000 USD, three times higher than younger borrowers aged 24 and under, whose average debt is about 13,800 USD.

"We frequently encounter borrowers whose outstanding balances have doubled, or even more, compared to when they started repayment", said Lindsay Clark, a borrower advocate at Savi, a firm that partners with businesses to help employees with student loan repayment.

According to Chris, starting in july, the McAuliffe family faces monthly payments of about 3,000 USD, three times higher than their pre-pandemic payments.

This is a result of the Trump administration's overhaul of the federal student loan system, effective 1/7. Some changes may lead to higher payment amounts and require more payments before debt is forgiven.

Other changes could help prevent balances from growing over time. For example, one repayment option will waive unpaid interest if the minimum monthly payment is insufficient to cover that interest. Parents will also be limited to borrowing a maximum of 20,000 USD per year per child, instead of being able to borrow the entire cost of their child's college education as before.

Robert Lee and his wife, Judi, live on the top floor of their son's house in Auburn, Maine, partly to afford their loans for their two children's education.

In 1997, Robert borrowed 66,000 USD through a program for parents funding their children's college education. Today, their son is a lawyer, and their daughter has her own business.

"My children are both successful", said Robert, 71 years old, speaking of his two children. "But I am still struggling with this debt".

Robert considers the loans his responsibility because he made the decision to borrow. His current monthly payment is about 300 USD. He estimates he has paid 91,000 USD on the loans, but still owes 51,000 USD. The debt will be forgiven in 2034, but he currently lives primarily on his pension and worries about unexpected medical expenses.

Student loans larger than mortgage debt

Some older borrowers are organizing online, hoping for debt forgiveness.

A Facebook group called "Fifty" brings together about 50 people over 50 who are struggling with debt. Their goal is full federal student loan forgiveness, and the group has submitted a petition compiling their personal stories to the government, including President Trump.

"We hate the term 'forgiveness' because most of us have already paid two or three times the original principal amount", said Amy Coryer Miller, a 59-year-old lawyer in Texas, who founded the group and owes over 100,000 USD in student loans.

Sharon Durkee, 72 years old, once envisioned traveling to Germany and Sweden to visit relatives in retirement. Instead, she is now applying for part-time jobs to gradually repay 101,000 USD in student debt, alongside mortgage payments and other living expenses.

"My student loan is even larger than my mortgage debt", said Durkee, from Medford, new jersey.

Students pushing bicycles across a street in Pittsburgh, Pennsylvania in january. Photo: AP

Her primary income comes from her pension and social security benefits. She also works part-time for a government agency providing therapy services for children, but this work is unstable, especially during the summer when students are out of school.

Durkee believes age is the main reason her job applications receive no response.

She participated in the SAVE repayment plan with payments of about 100 USD a month, but a federal court ordered the plan's termination in march. She also expects to pay higher monthly fees starting in july, when the student loan changes take effect. Her estimated monthly payment could be as high as 900 USD.

Even after fully repaying their debt, some older borrowers still struggle to stabilize their finances.

Susan Shannon, who lives on Orcas Island, washington, decided to take out student loans in her 50s to return to school for a career change.

She worked at the post office until a hand injury made delivering mail difficult. She then decided to become a chaplain, following a friend's suggestion who had made a similar career transition, and earned her master's degree in 2012.

"It was wonderful to go back to school", said Shannon, now 69 years old. "I have always been a lifelong learner".

In february, tired of watching her student loan debt grow, she decided to use over half of her savings to pay off the remaining 37,000 USD. However, clearing the debt means she will have to work longer to rebuild those savings, but she remains optimistic.

"I expect to earn this money back by the time I am 75 years old", she said.

Vu Hoang (According to WSJ, AFP, Reuters)